ICON College of Technology and Management

Faculty of Business and Management Studies

BTEC HND in Business

Subject: Marketing Essentials

Tutor:

Submitted by:

Full Name: …………

ID No: …………

Session: September 2020

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Table of Contents
Introduction......................................................................................................................................3

L01: Importance of marketing in the operation of British Airways and the process of
maintaining interrelation with other functional units of units.....................................................4

L02: 7P marketing mix of British Airways and its overall influence on the business operation 8

L03: Basic marketing plan for British Airways- development and evaluation.........................13

Conclusion.....................................................................................................................................24

References......................................................................................................................................25

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Introduction
A long-term plan, a life cycle that uncovers what is essential to make revenue and thrive in the
market is a requirement of each organization. The basic circumstance, prospects, goals, finances,
and many others of the organization are these important things. Although earning income, the
organization needs to build, connect, and bring profitability to the target market. Brand
marketing, brand strategy, and client relations are the foundations for this. The communications
functions in strategic strategy are based here (Singh, 2018). This essay would explore the
importance of marketing in British Airways and the multifunctional aspect of it along with its
interrelation with other departments this renowned airline company.

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L01: Importance of marketing in the operation of British Airways and the
process of maintaining interrelation with other functional units of units
The marketing role is in executing it across its distribution platforms in the British Airway's
strategic framework. Marketing means the objective respects and recognizes what separates an
organization from other competitor corporations. British Airways show their value proposition
by ads, which separate them, what service or product they can do better from their rivals. The life
cycle of a company is sustained by marketing workers. When the lifespan of the product/service
continues to diminish, the business has to concentrate on producing, redeveloping, and selling
the assets of the organization (Rahman, 2020).

Figure 1: Role of Marketing (Rahman, 2020).

In practice, the corporation will work harmoniously and meet the common goals of all business
activities of British Airways. Nonetheless, in reality, interdepartmental ties are often
characterized by heavy competition and lack of trust. Some conflict is caused by differences of
opinion about the interests of the company, some by genuine trade-offs between departments'
well-being and the well-being of the company and some by stereotypes and prejudicious things
(Singh, 2018).

Any company feature has a probable influence on consumer service in the traditional
organization. The marketing philosophy requires all teams to consider attracting consumers and

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working together to satisfy customers ' needs and aspirations. It will be taken in from the
communications team. The Vice-President Marketing (VP), or CMO has two tasks: (1) the
management of internal marketing efforts of the organization and (2) financial planning,
operation, and other customer support functions of the business (Shugan, Moon, Shi and Kumar,
2017).

Strategic marketing planning of British Airways involves integrating consumer perceptions with
the general path to be taken by the organization to achieve. Throughout competitive targeting, for
example, demographic segmentation plays a significant role. In a company's target markets,
geographical and demographic variations can influence customer buying habits. Strategic
marketing planning of British Airways allows this business to identify the variations and then
adjust brand strategies and the company's approach and the goods and services to meet the
particular needs of specific consumer groups (Hollensen, 2012).

Maybe the best solution is to provide a structured meeting with departmental staff regularly for
communications, where there is a need for better understanding and cooperation. Even if each
functional lends it to conventional allegations and grievances about each other, such a discussion
will lead to air clearance and a more fruitful partnership. The operational logic of other services
must be understood by each department. Marketing is more beneficial when units work together
to achieve widely accepted objectives (Heiets and Prakittachakul, 2020).

Sometimes, British Airways' engineering department gets into tension with marketing managers
because marketing managers want to manufacture multiple versions that often need personalized
components. Engineers often see the marketing of people as technically unacceptable, as
priorities that constantly change and as not fully reliable or reliable (Rahman, 2020).

British Airways' procurement managers see advertisers moving several models into a product
line involving the acquisition of a small number of items, rather than the purchase of a large
number of items. They claim that the selling of products and parts is too high a price. They often
hate marketing managers for forecasting mistakes, which contributes them to order to rush at
poor prices or keep disproportionate stocks (Farese, Kimbrell and Woloszyk, 2012).

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 Figure 2: Interrelationship of marketing with other functional units (Hollensen, 2012).

British Airways accountants often view commercialization as weak in the provision of timely
sales reports. They do not like customers' particular offers because they need different
accounting guidelines. Credit officials assess the possible credit standing of potential clients and
reject or limit credit to the most questionable. They claim that advertisers can sell to everyone
even people who have concerns about the payment (Lamb, Hair and McDaniel, 2012).

British Airways must establish a strategic approach to marketing and other activities that jointly
determine the best interests of the company. The approaches include joint conferences; joint
working groups, and connect employees, staff sharing systems, and evaluation procedures of
finding the most productive direction (Heiets and Prakittachakul, 2020).

The best approach is possible to suggest periodically a practical consultation with British
Airways agencies, in which there is a need for better communication and cooperation. Especially
if each job lends itself to conventional allegations and grievances about each other, such a
meeting will lead to air clearance and a more fruitful partnership. The organizational rationale of
other programs must be grasped by each team. Marketing is more effective when departments
work together to achieve widely recognized aims and objectives (Hollensen, 2012).

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However, there is no consensus about the scope of commercial power and jurisdiction over other
agencies. The marketing vice versa usually needs to work through persuasion instead of
authority. Others also fail to change how they operate to satisfy the needs of the consumer.
Departments of British Airways typically identify client problems and priorities from their point
of view. The problem is further compounded by shortcomings in coordination (Farese, Kimbrell,
and Woloszyk, 2012). They should consider the potential adverse responses to ads by different
functional groups.

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 L02: 7P marketing mix of British Airways and its overall influence on the
business operation
Seven elements of British Airways according to the 7P marketing framework has been discussed
below along with the overall influence of those elements in the business operation of this UK
based internationally recognized airline company.

Figure 3: 7P Marketing Mix (Lamb, Hair, and McDaniel, 2012).

i. Product

The result of a business is the secret to money-making and growth by upholding great products
or services. To gain success, a company must also step out of the competition and make a lot of
effort as it is made. Companies can buy goods or create their very own products and services.
But, irrespective of the scenario, organizations must understand what their clients need and want.
People will care about who the clients are, what types of businesses or consumers are interested
in buying a company, or use any services (Singh, 2018). A company must take into consideration
the value of a good or service for a consumer. We also say that businesses will be concerned
about whether it varies in the present market from other goods or services. It may include the
type of journey (first class, business) or different types of onboard technology, as well as product
vendors such as automotive makers selling different car types, but services such as British

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 Airways, who must ensure that they have a wide selection of options for their products available
(Lamb, Hair and McDaniel, 2012).

If a company wants to identify its products and to make the brand successful, there will be
incentives for its consumers. This is that customers pay money to get incentives on a
product/service. Those advantages and functionality cannot be useful for others, of which not
some but others are involved. An illustration of a product that supports the guardian for disabled
persons is products such as wheelchairs that are harder to navigate because it has different
equipment and easy to maneuver (Shugan, Moon, Shi and Kumar, 2017). It is an example of how
companies require apps that can encourage consumers to purchase the product because they can
also affect the lives of certain people. British Airways offer various types of travel classes while
offering first-class amenities and some of the most expensive perks. The British Airways first-
class service provides an unlimited, well-kept schedule, some of the finest catering, high-tech
entertainment network. British Airways is an example of a company where passengers can use
their service to make them more relaxed as compared to cheaper airline companies, but also to
fly in a way that offers them a friendly and enjoyable trip (Rahman, 2020).

The Dreamliner model from British Airways has a luxurious interior that supplies the aircraft
with new colors. According to the planner, British Airways decided to increase its standard of
goods and develop them more than ever before. The latest aircraft incorporates individual stands
and more room within the Dreamliner, allowing passengers privacy and comfort. The latest
interior would allow British Airways to differentiate themselves from the crowd for their
offering (Farese, Kimbrell, and Woloszyk, 2012). The in-flight cabin crew must meet guidelines
for selling the goods and services there and will inspire buyers, to transfer their services and
products to their clients. The report further notes that British Airways and its in-flight technology
products are constantly designed to ensure that passengers have the same expectations. Not only
infrastructure but also the interiors, bathrooms, chairs, health quality, and ensuring that staff is
equipped to help render British Airways (Blythe and Martin, 2019).

ii. Price

It is important to maintain the prices of a product or service because consumers just pay the
amount they feel a product is a worth and the standard. This relies on an enterprise’s spending

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 and its functionality. CIPD states that it must take into account rivals and the products they offer
when deciding on the selling prices of a company. Competitors may market the same product at
a lower price, and consumers may instead tend to buy it. A cost can lead to a loss in revenue for
a company because the price may be either too high or too low (Hollensen, 2012). British
Airways is an example of a pricing policy embraced by a company. British Airways has various
travel classes – business economy, economy, first-class – which encourage passengers to select
their level and the amount they pay. It helps the organization to recruit several different kinds of
employees and uphold its quality expectations by applying its pricing policy to categories. They
can also gain a competitive edge and a good reputation because by offering different price
options, they are equal to their consumers (Blythe and Martin, 2019).

iii. Promotion

Figure 4: The Promotion Mix (Blythe and Martin, 2019).

The 1st point that makes a brand profitable is to promote a product and to communicate it well.
This involves growing the number of people who purchase a certain product in business without
getting around the term for a single product or service. A company can promote brand, products,
and services in several different ways to enhance its customers there. Public Relations frequently
referred to as the "PR," can also be promoted, involving all stakeholders (media, consumers,

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 regulatory authorities) who assist organizations in promoting their positive relations to a larger
community through the media (Blythe, 2010).

British Airways promotes flights, services, and goods regularly through social media. British
Airways offer reasonable deals to their customers to promote their brand. The voucher provides
travelers' coupons known as Christmas gifts and because the voucher provides a reduced price
for flying to other countries, would exactly receive travelers in British Airways. British Airways
has developed an application via social media to reserve seats for customers. Although customers
can book flights quickly and effectively with the promotion of apps, they can improve offers and
more discount coupons (Singh, 2018).

Airlines like British Airways entertain passengers who wish to fly first class for a short period
for a lower price. This could motivate consumers to repeat their experience and British Airways
would, therefore, gain more money and a good reputation. Online mailing is another successful
form of advertisement. The report states Organizations often buy clothing, names, and telephone
numbers to call prospective consumers to advertise the brand there or to send mail to them
(Hollensen, 2012).

An organization must consider what kinds of people it tries to attract into its company, thus
making the messaging strategy intelligent and persuasive. British Airways says it is a company
that appeals to a wide range of people worldwide and that any person wishes at any stage to
travel with them. It is an optimistic message and an optimistic airline light (Heiets and
Prakittachakul, 2020).

iv. Place

The position factor in the marketing mix shows how precisely a company hits, e.g. the consumer,
and how that will occur. According to CIPD, the place also includes the places of production,
maintenance, and delivery of products to customers. During the marketing mix place, two
different ways can be reached with products (Blythe, 2010). Indirect delivery means a service
cycle-marketing to the wholesaler, then to the retailer, from the supplier. Personal selling,
though, is the businesses that market directly to their customers, and they can view the goods for
their thoughts. British Airports historically advertised and paying passengers via travel agencies,

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 but now companies such as these sell online or through telephone calls to passengers (Lamb,
Hair and McDaniel, 2012).

v. Process

As products are produced there and then, service is distinctive from a product. British Airways
passengers can base their views on service efficiency on the willingness of air hostess to satisfy
passenger requirements. These services cannot be pre-prepared as compared to a product and
therefore companies like British Airways may need to establish a process that ensures that
customers are given the same quality standards when shopping with a company, for example,
inflight food that British Airways supplies are always subject to a high-quality standard (Shugan,
Moon, Shi and Kumar, 2017).

vi. Physical Evidence

Physical evidence is precisely where good is delivered or the standard of service is given. For
example, a hotel provides beds for its guests to sleep on, but the nature of the accommodation
and the architecture of the space or what the hotel has to sell is what makes the hotel unique and
separates itself from the competition, e.g. space entertainment-Television, computers. British
Airways will build fares that are both comfortable and appealing. When paying for a more costly
airline, consumers will prefer higher quality and dedication (Rahman, 2020).

vii. People

The way business works are primarily influenced by people. People employed in a company
have an impact on the time a customer spends and the service he receives within the business.
Persons in an organization must be qualified to manage the way the product is marketed to
consumers. For strong workers in an organization, the prestige will increase and more customers
will be drawn. We provide high-level training for their staff, according to British Airways. Not
just members of the cabin crew but everyone from the crew and engineers work for British
Airways (Babin, 2016). British Airways' slogan indicates the strong and high goals they are
trying to meet.

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L03: Basic marketing plan for British Airways- development and evaluation

1.0 Executive Summary:

British Airways is one of the Global Airlines operating 570 services in 133 regions. This works
primarily from Gatwick and Heathrow. It faces a variety of issues, including loss of 531 million
lives in sales due to lack of external market analysis, relations with workers (strike issues). The
successful approach is also the only way to solve these challenges. British Airways policy covers
technology creativity, customer engagement, stakeholder partnerships, security, and health, etc.
Shugan, Moon, Shi, and Kumar, 2017).

1.1 Vision:

British Airways strives to give its consumers the best global access. We would improve our
position directly or through an increasing network of airline alliances in the world's leading
cities. Their dream of corporate accountability is to become the most accountable airline globally
and they have established standards that explain what we are doing.

1.2 Objectives:

a) British Airway's goal is to develop a world-leading airline to accomplish its five main
objectives.
b) The long term budget customer's carrier of choice.
c) Convenient and better customer support at all points of contact.
d) Grow British Airways in major cities worldwide.
e) Make sure they take the lead of the global market.

2.0 Target Markets

Like other aviation companies including Air Berlin, American Airlines, Cathay Pacific, and
others, British Airways has entered into constructive partnerships. This contributed to building a
global network while ensuring an overall economic impact is reduced. British Airways ( BA)

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aims to increase its consumer experience and maintain its scale and focus on the market (Shugan,
Moon, Shi and Kumar, 2017).

2.1 Market Definition and Segmentation

Type of Consumer Requirements Segment Interest

Consumer
Consumer King Comfort and price of travel are granted The consumer wants
premium by customers in this group. Travel convenience which can be
prices do not impact their choices. We focus used for luxury seats on the
on transportation effects. suggested route.
Frill Seekers Consumers in this segment are committed to This consumer will quest
particular airlines and willing to travel. They for the price but also places
are moderately priced and often seek to reward on service forms
capitalize on loyalty programs and a program and the value that the
for frequent miles. The attributes are oriented airline attributes to existing
to those customers. customers.
Hitchhikers Transportation is an absolute requirement for The goal of the consumer is
consumers in this market. The versions of the to travel from the UK to
travel plans are versatile and just price- San Francisco non-stop.
driven.

2.2 Industry Competition

There is fairly strong competition in the airline industry. For example, the aviation industry has
demonstrated a high degree of competition in transportation, which has been influenced by many
factors like quality and price (short time).

2.3 Target Market Segment Strategy

Buyer power is generally relatively high due to the price sensitivity of travel, the growth of
online sites, and changes in the policy on company travel. However, British Airways has a
moderate degree of influence over customer value prerequisites, thanks to its differentiated

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service to first-class and business travelers, including additional bathroom and in-flight
entertainment. For starters, British Airways gives its customers better choices of food and
beverages (Shugan, Moon, Shi, and Kumar, 2017).

2.4 Communication

The power supply of airlines such as BA is moderate to high because companies like Airbus and
Boeing have to enter into a deal. The duopoly in new jetliners (especially A380) are developed
by both companies and are motivated by the lack of substitute suppliers. Fuel suppliers, on the
other hand, have moderate effects as well. Marketline (2019) estimates that gasoline prices
stayed modest and steady in 2014, although 29% of operating costs were compensated for in
2018.

2.5 Distribution Channel

Despite scale economies, business entrants are small. Collaboration with other carriers is the
main way to break into a new market. To order to help European companies, for example, British
Airway has collaborated with Iberia. British Airway also works from London's three airports and
therefore has a clear market leader. In the foreign market, the possibility of alternatives is
relatively small because certain styles of the journey such as sea voyages require more time.
British Airway is working on the short-distance and long-distance market with separate markets
in every industry. British Airway competes for regional low-cost airlines in the short-haul
market. In the long distances, Virgin, Lufthansa, Emirates, and Air France are the main rivals of
British Airways (Singh, 2018).

2.6 Competitive Force

British Airways' price policy would take care of consumer needs and include correct pricing.
British Airways has a preferential pricing model in which consumers have the right to pick to
choose the style of seating they need that fits their budget. The type of service that customers
will receive and the requirements from the flight are explicitly defined on their website. British
Airways promises the highest quality by ensuring that consumers can purchase from British
Airways directly without relying on external partners (Shugan, Moon, Shi, and Kumar, 2017).

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2.7 Keys to Success

The organization's promotional strategies are vast and intricate. It is possible to follow various
modes, including Radio, magazines, e-marketing, billboards, etc. The main way for British
Airways to promote products is direct marketing so that BA can reach its customers directly. The
primary objective of British Airways is to promote positive customer relations by ensuring that
the aircraft receive new innovative applications. The iPads were provided with in-flight menus
for 2000 of cabin crew members, which would help boost service quality. British Airways is
perceived to be a crucial driver in increasing cost efficiency through the use of robust internet
marketing and social media marketing. Mobile device use is omnipresent and the number of
smartphones that replace PCs has increased worldwide (Singh, 2018).

3.0 Marketing Plan Strategy:

Airlines are part of the airline sector and seek to give their specific customers the best product.
Marketing, which involves an airline promotional campaign, social media, and other services,
will, thus, affect how passengers win or lose to other airlines. British Airways must remain
appealing and efficient to draw the most passengers and create an atmosphere (Lamb, Hair and
McDaniel, 2012). Some of the basic yet most effective marketing aviation tactics for British
Airways are discussed below.

3.1 Providing Loyalty Plan

British Airways should be enabling passengers to become repeated clients and book additional
flights for their airline by developing a loyalty plan. On similar flights, most carriers demand the
same fare. British Airways will benefit from the competition by encouraging a consumer to
collect rewards by gaining points. Plans may include seat refurbishments, complimentary fares,
and lounges at airports or limited parking areas. They can note that the participants of the loyalty
system will book directly with them to optimize their rewards (Shugan, Moon, Shi, and Kumar,
2017).

3.2 A Creative Airline Publicity Program

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Figure 5: Online Marketing Plan in Aviation Industries (Heiets and Prakittachakul, 2020).

Thinking outside the box will help British Airways to step beyond the daily lives of their clients.
In addition to electronic and digital ads, their presence in the culture will be made them more
popular because the best airline promotional strategy has always been a mix of conventional and
not conventional promotion techniques (Hollensen, 2012). In New York City, Air France had
once sent vans to deliver free food products to residents in various regions. At sporting events
and food festivals, Delta built Sky360 Lounges. In the same way, British Airways can bring their
face before the media and convince people that they are good companies.

3.3 Program for Public Social Media

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 Figure 6: Advertising and Marketing Expense of British Airlines Companies (Rahman,
2020).

To deepen ties and humanize the name, British Airways must ensure that they meet social media
clients. They should find what sites their clients use and create a list. They need to use this
platform to sell and upgrade deals, provide customer support, and have a fun look at the business
behind-the-scenes. Clients of British Airways would be pleased to learn that airlines are
engaging in civic projects and that staff is out of the way to please their clients (Babin, 2016).

3.4 Facilitating travel advantages

Having entertainment in the air with apps such as in-seat devices that play on-site Television
programs, songs, games or videos, will give British Airways a value for their consumers. For
example, OpenSkies offered its passengers iPads on selected flights with different entertainment
choices. Through integrating benefits into British Airways’ marketing plan, they can inspire
more travelers, the next time they look for a flight, to choose their airline. Traveling provides a

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variety of incentives that can be used by an airline operator (Lamb, Hair, and McDaniel, 2012).
Clients will book tickets, carry luggage, and wait at the airport. Sometimes people need some
flight training as well. After they have boarded the plane, passengers need to grab their luggage,
probably rent a car and check-in. British Airways can offer features and benefits for traveling
with their company to meet these customer needs. For instance, they can partner with car rental
companies and offer discounts for airline customers. They can also offer a free drink or
relaxation lounge for customers waiting for their aircraft (Heiets and Prakittachakul, 2020).

3.5 Digital Promotion

Figure 7: Tweeter Marketing of British Airways (Rahman, 2020).

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 Figure 8: Tweeter Marketing of British Airways (Rahman, 2020).

4.0 Expense Budget Summary

Marketing Expense Budget Year 1 Year 2 Year 3

Promotion on Social Platform £ 30 M £ 25 M £ 20 M
Web application and analytics £ 40 M £ 35 M £ 30 M
Publicity Program £ 70 M £ 60 M £ 65 M
Loyalty Plan £ 50 M £ 40 M £ 60 M
Table 1: Marketing Expense Budget (Babin, 2016).

5.0 Sales Forecast

Sales forecast Year 1 Year 2 Year 3

Unit Sales
Passenger Revenue 40,300 60,000 75,000
Cargo Revenue 10,000 14,000 16,600
Other Revenue 5,000 7,000 10,000
Unit Prices

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 Passenger Revenue £ 1500 M £ 1750 M £ 2200 M
Cargo Revenue £ 750 M £850 M £ 900 M
Other Revenue £ 300 M £ 400 M £ 550 M
Table 2: Sales forecast (Heiets and Prakittachakul, 2020).

6.0 Marketing Metrics

Figure 9: Influencer marketing metrics (Heiets and Prakittachakul, 2020).

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 Figure 10: Brand awareness metrics (Singh, 2018).

Figure 11: Brand Passion Index (Singh, 2018).

7.0 Marketing Organization

British Airways should invest in emerging innovations that enhance the travel experience of your
passengers using the edge of smartphones and e-commerce innovations. They might try

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streamlining the booking experience online by creating an app and bundling resources like car
rental and hotel rental. They should enable passengers to sign in, board, and verify flight status
by using these features in the submission (Shugan, Moon, Shi and Kumar, 2017). They must take
initiatives to create a group of supporters and collaborations with airports, locations, and
accommodations to boost the marketing campaigns by collaborating with other travel agencies.
British Airways should give customers the best experience possible to cultivate loyalty. They
must be clear and ready to correct errors. British Airways have the opportunity to climb above
their rivals when people are waiting for a flight by being innovative with their ads and designing
the best airline promotional strategies (Rahman, 2020). Many aerospace marketing groups can
help them develop a modern marketing campaign that brings the personality of their company to
light.

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Conclusion
At least 40,000 aircraft in the world operated in 2019, with more than 5 billion passengers. By
2040, nearly 40 billion passengers are expected to reach their destination in the skies. One of the
biggest aircraft manufactures also forecasts the need to service the increasing amount of
passenger and aged aircraft for another 40,000 aircraft in the next 20 years. Such trends in
growth give airlines like British Airways the potential to enhance their marketing strategies and
their customer interface. When airlines take advantage of these incentives they can also build a
secure customer base by consumer engagement and building a feeling of loyalty. Clients must
also be part of the feedback on an aviation marketing campaign if they want to benefit and be
involved.

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References
Babin, B., 2016. Essentials Of Marketing Research.

Blythe, J., and Martin, J., 2019. Essentials Of Marketing. Harlow, United Kingdom: Pearson
Education Limited.

Blythe, J., 2010. Marketing Essentials. Oxford: Elsevier.

Farese, L., Kimbrell, G., and Woloszyk, C., 2012. Marketing Essentials. New York:
Glencoe/McGraw-Hill.

Heiets, I. and Prakittachakul, V., 2020. Optimizing the Marketing Strategies of Qantas Airways
and Thai Airways. Transnational Marketing Journal, 8(1), pp.95-124.

Hollensen, S., 2012. Essentials Of Global Marketing. Harlow: Pearson.

Lamb, C., Hair, J., and McDaniel, C., 2012. Essentials Of Marketing. Mason, Ohio: South-
Western Cengage Learning.

Rahman, M., 2020. Dynamic marketing productivity and firm intangible value: insights from the
airlines' industry. Journal of Marketing Theory and Practice, pp.1-14.

Shugan, S., Moon, J., Shi, Q. and Kumar, N., 2017. Product Line Bundling: Why Airlines
Bundle High-End While Hotels Bundle Low-End. Marketing Science, 36(1), pp.124-139.

Singh, B., 2018. Conceptualization and Measurement of Consumer Based Brand Equity for
Airlines. Indian Journal of Marketing, 48(9), p.7.

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